Cannabis-based pharmaceutical drug products remain a niche market despite the plant’s significant promise. By acting on the endocannabinoid system, a widespread neuromodulator that plays an important role in everything from central nervous system development to synaptic plasticity, cannabinoids have the potential to treat a wide range of conditions.

Dronabinol, a synthetic version of THC, and Nabilone, a synthetic analog of THC, have been FDA approved since the 1980s for HIV/AIDS-induced anorexia and chemotherapy-induced nausea, and more recently, GW Pharmaceuticals—recently acquired by Jazz Pharmaceuticals—secured FDA approval for synthetic CBD for the treatment of seizures.

However, cannabinoids have shown promise that extends well beyond these niche markets and into areas like chronic pain and mental health treatments. The liberalization of cannabis regulations across North America and Europe has opened the door for researchers to study these products—potentially creating billions in value for shareholders.

Flora Growth Corp. (NASDAQ: FLGC), a leading all-outdoor cultivator and manufacturer of cannabis flower and derivative products, plans to capitalize on these dynamics and bridge the divide between cannabis and pharmaceuticals with its unique drug development platform and pathway to commercialization. Additionally, Flora continues to focus on its core business of building a global distribution platform to supply its medical-grade cannabis products and input materials to its global portfolio of premium, cannabis consumer packaged goods (CPG) brands for cosmetics, nutraceuticals, hemp textiles, and food and beverage.

A Unique Approach

Flora Growth aims to identify scientific gaps in the cannabis industry and leverage its proprietary drug development platform to identify new bioactive compounds. Using artificial intelligence and machine learning, the platform identifies compounds in the cannabis plant that interact with certain gene targets responsible for specific disease states and conditions.

“There is an urgent need for more research to better understand the molecular and biochemical effects of cannabis at the cellular level, to begin to apply its implications as a pharmaceutical drug,” said Flora’s Director and Lead Scientific Advisor, Dr. Annabelle Manalo-Morgan in a recent press release outlining the company’s ambitious plans.

In addition to its unique approach to drug discovery and development, the company intends to work with government regulators and academic institutions to initiate academic studies at a low cost and efficiently move through the drug development process. The company also expects to fast-track traditional timelines by running phase trials in parallel. These combined initiatives should prove to significantly derisk this ambitious initiative by taking advantage of government subsidies and grants, as well as prove to be incredibly and relatively capital efficient compared to traditional clinical trials as Flora will only be responsible for a small portion of the bill, presumably largely contributing by supplying flower and derivative products for the trials, as well as their human capital to oversee and manage their research projects.

These efforts could unlock shareholder value in many ways. For example, the company could license promising compounds to third parties to develop in exchange for royalties or bring these programs through clinical trials leveraging its existing supply capabilities. Of course, GW Pharmaceuticals demonstrated the demand for M&A across the cannabinoid-based pharmaceutical industry.

Diversified Opportunity 

Flora Growth sets itself apart from development-stage pharmaceutical companies with its diverse commercial operations. For example, the company is already manufacturing and distributing more than 60 over-the-counter products in a 16,000 sq. ft. facility with a modern laboratory. These products are focused on everything from beauty to food and beverage.

In addition to product manufacturing, the company cultivates cannabis in Colombia where it has production costs of less than $0.06 per gram and yields greater than 125 grams per plant. The company has 10.8 million sq. ft. of licensed cultivation area that could make it one of the largest cannabis cultivators in the world and larger than competitors like Aphria or Aurora.

The company’s multi-sector ambitions are supported by an exceptional management team. For instance, President and CEO Luis Merchan has over a decade of experience in everything from enterprise sales to corporate strategy, serving as VP of Workforce Strategy for Macy’s where he managed a multi-billion-dollar P&L expense line for its 540 stores.

Looking Ahead

Flora Growth Corp. (NASDAQ: FLGC) offers investors an opportunity to participate in a low-cost cannabis cultivator and manufacturer with a global cannabis CPG portfolio of premium brands that is also foraying into high-margin cannabis-based pharmaceuticals. With its existing commercial operations and revenue streams, the company may be less risky than development-stage pharmaceutical companies without any other operations.

For more information, visit the company’s website or download their investor presentation.

Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

According to the Lancet Commission, mental health disorders are on the rise in every country worldwide, and the resulting lost productivity will cost the global economy $16 trillion by 2030. Yet, despite nearly two billion people with mental illness each year, these conditions are routinely misdiagnosed and inadequately treated.

MedXtractor Corp.’s (CSE: MXT) (OTC: MXTTF) SHAMAN and YMI programs apply machine learning to high-resolution health records to better diagnose mental health disorders. In addition, the company aims to predict what treatments are most effective in addressing these conditions, including psychedelics, which have shown tremendous promise in early clinical trials.

Let’s take a closer look at the challenges facing mental health treatments and how SHAMAN and psychedelics could play critical roles in improving them.

Mental Health Challenges

Mental health disorders affect a high percentage of the population. For example, mood and anxiety disorders affect nearly one-third of the U.S. population. In addition, a relatively high rate of people experiencing these conditions visit their primary care physician with physical complaints, like fatigue, creating an opportunity for diagnosis and treatment.

Despite the high prevalence of these disorders, few patients are accurately screened and diagnosed. For example, research shows that primary care physicians misdiagnosed 65.9% of patients with major depressive disorder, 92.7% of patients with bipolar disorder, 71% of patients with generalized anxiety disorder, and 97.8% of patients with social anxiety disorder.

Even if there’s an accurate diagnosis, many mental health treatments have less-than-desirable efficacy, and there can be significant side effects. Psychedelics could offer a better alternative for many patients. Still, years of prohibition have set back clinical trials, and there’s not a lot of information about how and when to administer these kinds of treatments.

Psychedelics Provide a Solution

Psychedelics have been used for thousands of years in religious ceremonies and as part of various cultures. These days, over 30 million people in the U.S. have used psychedelics for mystical experiences, curiosity, and introspection. The widespread use has made it clear that they don’t cause organ damage, withdrawal symptoms, or elicit compulsive use.

Researchers are just starting to uncover the potential for psychedelics to treat mental health disorders. For example, in a small study of adults with major depression, Johns Hopkins researchers found that two doses of psilocybin with psychotherapy produced rapid and significant reductions in depressive symptoms. Half of the participants were in complete remission through four weeks.

Despite the tremendous promise of psychedelics, there are no large-scale standardized clinical trials or data sources that clinicians can use to guide their patient decisions. Many studies thus far involve only a small number of participants and have a minimal focus without an eye toward mainstream applications at a clinical level.

Building the Data Backend

MedXtractor is leveraging machine learning to predict the impact of psychedelics and psychotropics on mental health disorders through its SHAMAN program. With extensive and ever-expanding validated data, the platform can provide high-resolution opinions on the probabilities related to many mental health afflictions.

Psychedelics and psychotropics and their potential application to mental health afflictions are SHAMAN’s initial target. In mid-June, the company announced that it has collected more than 400 complete reference records and is on track to reach its target of 500 complete reference records by June 30, 2021.

The company hopes to reach its Phase 3 target of 800 reference records by the end of August and launch the platform in December. In the meantime, management is focused on tight cost controls to keep project costs under budget while developing mHeath applications and their bio-extraction business operations.

Looking Ahead

Mental health disorders cost the global economy trillions of dollars each year, but screening, diagnosis, and treatment remain largely ineffective despite their prevalence. Psychedelics could play a role in turning around these trends, but clinicians require more data to properly diagnose patients and determine if psychedelic therapies are suitable for them.

MedXtractor Corp. (CSE: MXT) (OTC: MXTTF) is leveraging machine learning to garner insights from hundreds of complete medical records. Using these insights, the company hopes to provide high-resolution opinions on the probabilities related to many mental health afflictions.

Investors may want to take a closer look at the stock as it continues to collect complete reference records ahead of its launch late this year. For more information, visit the company’s website or download their investor presentation.

Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.